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work life as more than $800,000.
•However, such estimates don't factor in the crippling student loan debt many graduates face or their inability to find work in a chosen field during difficult times. But still, the unemployment rate among college grads is roughly half that of high school grads - 4.5 percent vs. 8.4 percent. College is still a worthwhile investment for many people if they don't go overboard on loans and choose a degree with good earnings and employment potential.
•Mortgages. Before the real estate crash, homeownership was considered good debt because historically, when someone finally paid off their mortgage, their home was usually worth much more than the purchase price. For many, this probably still will be true, unless they bought during the market upswing or are forced to sell before prices can recover. After all, mortgage interest rates are historically low and interest and mortgage points are still tax-deductible.
•Just don't buy more house than you can afford. Factor in expenses like property tax, primary mortgage insurance, homeowners dues, utilities and repairs - and if you get an adjustable rate mortgage, calculate how high rates could climb.
•Bad debt. What qualifies as bad debt hasn't changed since the recession, but budget-conscious consumers are paying more attention now. Meals out, excessive vacations, and unnecessary clothing or electronics - wants vs. needs - all qualify if you're spending beyond your means. Basically, if you can't pay the bill in full within a month or two, reexamine whether it's a worthwhile expense; particularly if you don't have at least six to nine month's pay stashed in an emergency fund or you're trying to save for a car or home.
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•Jason Alderman directs Visa's financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney.